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As the oligarchical element in the constitution developed, the more important functions of the ducal office were assigned to other officials, or to administrative boards, and he who had once been the pilot of the ship became little more than a figurehead. The last doge was Lodovico Manin, who abdicated in May 1797, when Venice passed under the power of Napoleon.

During the 20th century, when many artesian wells were sunk into the periphery of the lagoon to draw water for local industry, Venice began to subside. It was realised that extraction of the aquifer was the cause. This sinking process has slowed markedly since artesian wells were banned in the 1960s. However, the city is still threatened by more frequent low-level floods (so-called Acqua alta, "high water") that creep to a height of several centimeters over its quays, regularly following certain tides. In many old houses the ground floor is unoccupied due to the periodic floods, but people continue to live and work in the upper stories.

In Venice the office of doge was first instituted about 700, replacing tribunes that had led the cluster of early settlements in the lagoon, according to the chronicler John the Deacon, author of the Chronicon Venetum ("Chronicle of Venice"), written about 1000 CE. Whether or not the first doges were technically local representatives of the Emperor at Constantinople, the doge like the Emperor held office for life and was similarly regarded as the ecclesiastical, the civil and the military leader, in the power structure termed caesaropapism. The doge's prerogatives were not defined with precision, and though the position was entrusted to members of the inner circle of powerful Venetian families, after several doges had associated a son with themselves in the ducal office, this tendency towards a hereditary monarchy was checked by a law which decreed that no doge had the right to associate any member of his family with himself in his office, or to name his successor. After 1172 the election of the doge was finally entrusted to a committee of forty, who were chosen by four men selected from the Great Council, which was itself nominated annually by twelve persons. After a deadlocked tie at the election of 1229, the number of electors was increased from forty to forty-one.

In the 12th century the essentials for the power of Venice were laid: the Arsenal was under construction in 1104; Venice wrested control of the Brenner pass from Veronia in 1178, opening a lifeline to silver from Germany; the last autocratic doge, Vitale Michiele, died in 1172.

In the early years of the republic, the political system can be classified as an autocracy, with the Doge as the almost absolute ruler. In 1223, the aristocratic families of Rialto drastically diminished the powers of the Doge by the establishment of an advisory body that would later be called the Quarantia and a supreme tribunal which would later be called the Signoria. They also created two bodies called sapientes which later grew into six bodies. The combination of sapientes and certain other groups was called a collegio, a kind of ministry to carry out the functions of government. A senate, called the Consiglio dei Pregadi was organized in 1229 with sixty members elected by the Major Council1. During this period the Doge had little real power left, and actual authority was exercised by the Great Council, an extremely limited parliament-like body in which only members of the great aristocratic families of the republic were allowed to participate. Venice claimed that its government was a 'classical republic' because it was a fusion of the three basic forms present in a mixed government: with the regal power in the Doge, the aristocratic in the senate, and the democratic in the Great Council2.

Early in the 15th century, as new mainland territories were expanded, the first standing army was organized, consisting of condottieri on contract. In its alliance with Florence in 1426, Venice agreed to supply 8,000 cavalry and 3,000 infantry in time of war, and 3,000 and 1,000 in peacetime. Later in that century, uniforms were adopted that featured red-and-white stripes, and a system of honors and pensions developed. Throughout the 15th century, Venetian land forces were almost always on the offensive and were regarded as the most effective in Italy, largely because of the tradition of all classes carrying arms in defense of the city and official encouragement of general military training.